FCA releases latest mortgage market statistics provided by 40 regulated lenders and administrators
The Financial Conduct Authority has released its latest mortgage statistics covering the first quarter of 2020 highlighting the overall lending figures and trends. The report is produced from the data provided by 40 regulated mortgage lenders and administrators.
The key figures show the outstanding value of all residential mortgage loans was £1,509 billion at the end of 2020 Q1, 3.9% higher than a year earlier. Also, the value of gross mortgage advances in 2020 Q1 was £65.8 billion, 3.8% higher than in 2019 Q1. The value of new mortgage commitments the lenders agreed to advance in the coming months was 6.1% higher than a year earlier, at £67.6 billion.
The share of gross mortgage advances for buy-to-let purposes covering house purchase, remortgage and further advance was 14.0% in 2020 Q1, unchanged from the level seen in 2019 Q1.
Of the remaining 86.0% of mortgage advances for owner-occupiers, the share for remortgages was 32.1%, a decrease of 1.2pp (percentage points) since 2019 Q1. The share for house purchase was 47.0%, 0.9pp higher than 2019 Q1. Further advances and other mortgages including lifetime mortgages accounted for 6.9% of gross advances combined.
The share of gross mortgage advances with interest rates less than 2% above the Bank Rate was 73.2% in 2020 Q1, 10.2 percentage points lower than a year ago driven by the 0.65% Bank Rate reduction in March.
The share of mortgages advanced in Q1 with loan-to-value ratios exceeding 75% fell on the quarter to 38.0%, but remain 1.0pp higher than a year earlier.
The share of gross mortgage lending in Q1 with loan-to-value ratios exceeding 90% also decreased in the quarter, by 0.5pp, to 5.2%.
The share of mortgages advanced with loan-to-values over 95% was 0.3%, 0.1pp higher than the same period in the previous year.
Borrowers with a joint income who had a loan-to-income of 3 or above accounted for 33.3% of gross mortgage lending in Q1 2020, a 2.0pp decrease compared to the previous quarter. Borrowers with single income who had a loan-to-income ratio of 4 or above accounted for 10.9% of gross mortgage lending in Q1 2020.
Outstanding balances with some arrears increased by 1.8% over the quarter to £13.7 billion and now accounts for 0.91% of outstanding mortgage balances.
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